twoheads
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Programming
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Post by twoheads on May 11, 2017 8:12:58 GMT
It's interesting in itself that we are all excited when we can get rid of loans, don't you think? Yes... and not only because we can get rid of loans.
There are many who offload everything early to mitigate risk, even in loans in which they have done their DD and are happy to be invested. There are some who invest almost blindly with little or no DD and rely on the SM to get them out at a strategic point. There are also those who suddenly find they need to cash out for whatever reason. All those who use the SM in these ways will feel much better when there is good liquidity.
But the added liquidity also means that the Lendy platform as a whole is in a better position. Even those who don't use the SM will feel better that so little of the loan book up for sale (£2.1m at present, out of a total loan book of £181m - including all defaults). As long as the investors keep buying then the platform is fine - and that's the main point for those who don't bother with the SM - they simply need the platform to continue what it's doing and remain a strong business.
So, the ability to be able to get rid of loans is good for those who want to and also good for those who don't.
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littleoldlady
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Post by littleoldlady on May 11, 2017 8:39:35 GMT
It's interesting in itself that we are all excited when we can get rid of loans, don't you think? Yes... and not only because we can get rid of loans.
There are many who offload everything early to mitigate risk, even in loans in which they have done their DD and are happy to be invested. There are some who invest almost blindly with little or no DD and rely on the SM to get them out at a strategic point. There are also those who suddenly find they need to cash out for whatever reason. All those who use the SM in these ways will feel much better when there is good liquidity.
But the added liquidity also means that the Lendy platform as a whole is in a better position. Even those who don't use the SM will feel better that so little of the loan book up for sale (£2.1m at present, out of a total loan book of £181m - including all defaults). As long as the investors keep buying then the platform is fine - and that's the main point for those who don't bother with the SM - they simply need the platform to continue what it's doing and remain a strong business.
So, the ability to be able to get rid of loans is good for those who want to and also good for those who don't.
Classic bubble.
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r1200gs
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Post by r1200gs on May 11, 2017 8:45:11 GMT
It's interesting in itself that we are all excited when we can get rid of loans, don't you think? Yes... and not only because we can get rid of loans.
There are many who offload everything early to mitigate risk, even in loans in which they have done their DD and are happy to be invested. There are some who invest almost blindly with little or no DD and rely on the SM to get them out at a strategic point. There are also those who suddenly find they need to cash out for whatever reason. All those who use the SM in these ways will feel much better when there is good liquidity.
But the added liquidity also means that the Lendy platform as a whole is in a better position. Even those who don't use the SM will feel better that so little of the loan book up for sale (£2.1m at present, out of a total loan book of £181m - including all defaults). As long as the investors keep buying then the platform is fine - and that's the main point for those who don't bother with the SM - they simply need the platform to continue what it's doing and remain a strong business.
So, the ability to be able to get rid of loans is good for those who want to and also good for those who don't.
All true of course, but for me it's telling just how few want to hold to maturity, hence the excitement at being able to off load loans. I see less excitement when we see new offerings in the pipeline, which seems to be the wrong way around.
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GeorgeT
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Post by GeorgeT on May 11, 2017 9:53:29 GMT
Good to see the buying frenzy has carried over to today.
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mikes1531
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Post by mikes1531 on May 11, 2017 10:52:12 GMT
All true of course, but for me it's telling just how few want to hold to maturity, hence the excitement at being able to off load loans. I see less excitement when we see new offerings in the pipeline, which seems to be the wrong way around. The strategies of those who frequent this forum may be very different from those who don't, and most investors don't visit the forum. Sorry, but I can't get excited about what I perceive to be risky 7-10% loans. And I have my concerns about 12% DFLs where the platform refuses to publish the IMS reports that would allow us to judge for ourselves whether the progress being made is commensurate with the money being spent.
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littleoldlady
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Post by littleoldlady on May 11, 2017 15:11:18 GMT
Common sense suggests that a 12% loan is more risky that one at 6%. Otherwise why is the borrower paying 12%+? So it would be prudent to adjust ones expected, or hoped for, net return from 12% loans. For example the net return could be reduced from 12% to 6% by:
15% of loans losing an average of 40%
12% of loans losing an average of 50%
10% of loans losing an average of 60%
6% of loans losing 100%
A 100% loss may seem improbable but I know of several (I am holding them) that could go that way, not least because of the fees that the vultures administrators charge - up to £500 per hour.
So a solid 6% loan on a residential property, properly valued and with a sensible LTV does not look so bad to me.
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GeorgeT
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Post by GeorgeT on May 11, 2017 15:23:01 GMT
Common sense suggests that a 12% loan is more risky that one at 6%. Otherwise why is the borrower paying 12%+? So it would be prudent to adjust ones expected, or hoped for, net return from 12% loans. For example the net return could be reduced from 12% to 6% by: 15% of loans losing an average of 40% 12% of loans losing an average of 50% 10% of loans losing an average of 60% 6% of loans losing 100% A 100% loss may seem improbable but I know of several (I am holding them) that could go that way, not least because of the fees that the vultures administrators charge - up to £500 per hour. So a solid 6% loan on a residential property, properly valued and with a sensible LTV does not look so bad to me. Common sense might suggest that, but we have seen there is an apparent tendency for Lendy to price loans more by their size than by their risk. Nearly all the tiddlers are brought to the market at 7 or 8% yet the DD probers have advised that all is not always rosy with these loans. Conversely, most of the big loans are offered at 11 or 12%. It seems the rate has as much to do with attracting enough investors to fill the loan as the risk. The other point I would make is that the risk of platform failure and 'out of anyones control' economic/political factors is an underlying one that affects all loans equally and, to me, a single digit rate of return cannot compensate for those risks , regardless of the loan.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 11, 2017 15:51:46 GMT
Common sense suggests that a 12% loan is more risky that one at 6%. Otherwise why is the borrower paying 12%+? So it would be prudent to adjust ones expected, or hoped for, net return from 12% loans. For example the net return could be reduced from 12% to 6% by: 15% of loans losing an average of 40% 12% of loans losing an average of 50% 10% of loans losing an average of 60% 6% of loans losing 100% A 100% loss may seem improbable but I know of several (I am holding them) that could go that way, not least because of the fees that the vultures administrators charge - up to £500 per hour. So a solid 6% loan on a residential property, properly valued and with a sensible LTV does not look so bad to me. Perhaps, once the burgeoning uprising finally shames RICS into cleaning up "The VR Scam" we can then, together, sort out "The Administrator Scam"? Just a thought, I feel like The Lone Ranger some times. 
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vmail
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Post by vmail on May 13, 2017 22:12:32 GMT
SM has been slow today, been able to get a few 200+ and 300+ days 12% loans
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GeorgeT
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Post by GeorgeT on May 14, 2017 11:22:26 GMT
SM has been slow today, been able to get a few 200+ and 300+ days 12% loans Wow. High class loans. Congratulations. Yes indeed, the SM has gone slow again but it's Sunday and there's not a lot left on there though you have advised that this morning there have been some pieces of high quality up for grabs and congratulations to you for hunting them out.
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micky
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Post by micky on May 14, 2017 12:18:41 GMT
A note for anyone interested, I will be listing approx 20k of various qualities just after midnight.
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vmail
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Post by vmail on May 14, 2017 13:51:57 GMT
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Liz
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Post by Liz on May 14, 2017 16:25:32 GMT
Sounds like low-quality to me.
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micky
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Post by micky on May 14, 2017 17:13:00 GMT
Various qualities  |
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sussexlender
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Cheat seeking missile
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Post by sussexlender on May 14, 2017 19:22:55 GMT
Could you give me a clue so I know if I want to stay awake until 00.05?
Best wishes, SXLR
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